The Zhitong Finance App learned that in the commercial boom in the spring of 2024, the national underwear brand Urban Beauty (02298) once again demonstrated its leading position and strong development momentum in the industry. According to the latest business intelligence, Urban Beauty achieved remarkable results at the spring investment fair, successfully signing 706 new stores. This achievement not only injected new impetus into the brand's development, but also had a positive and profound impact on the entire underwear market and even the retail consumption business model.

The Zhitong Finance App learned that in December 2022, in order to expand the sinking market, Urban Beauty officially launched the “One Hundred Cities, One Thousand Stores” campaign. Entering 2023, the “One Hundred Cities and a Thousand Stores” plan continues to hand over outstanding responses. Many provinces such as Anhui, Guangdong, Inner Mongolia, Sichuan, Fujian, Hunan, and Jiangsu have already opened 100 stores. Xian Shunxiang, COO and executive director of Urban Beauty, said that instant retail has become an important trend in modern business, and the company will continue to adapt to consumer trends and strengthen the integration of offline stores and instant retail. He revealed that in 2023, Urban Beauty opened more than 800 new offline stores, and has already found an offline store model that continues to be profitable. It plans to open about 1,000 new offline stores in 2024 to achieve wider market penetration. Meanwhile, the Spring Investment Fair successfully signed contracts for more than 700 new stores, laying a good foundation for the smooth achievement of this goal.

According to the Zhitong Finance App, Urban Beauty has also officially reached a strategic cooperation with Meituan Flash Shopping. Meituan flash shopping helps urban beauty digitally upgrade and launch an instant retail model. Since the pilot operation in August 2023, Urban Beauty's sales have increased 222% month-on-month, and brand exposure has increased 142% month-on-month. Up to now, Urban Beauty has launched Meituan flash sales at over 2,500 stores nationwide.

As a national underwear brand with leading sales volume in the country, Urban Beauty has maintained a leading position in women's underwear sales for many years with its cost-effective products and extensive market coverage. The 2023 financial report shows that the company achieved revenue of 1,368 billion yuan in the first half of the year, net profit increased 158% year on year, and gross margin also increased. Some data also fully proved the viability and profitability of the Urban Beauty “One Hundred Cities and One Thousand Stores” plan.

The CICC Research Report also pointed out that the company began comprehensive changes in 2022, including establishing the country's leading sales professional underwear position and creating professional cost-effective products. A total of 800+ stores on the 1H23 channel side have signed franchise agreements, a record high. The profitability and operating capacity of the financial reporting side have improved markedly. The bank is optimistic about the company's determination and results to continue to push forward strategic changes.